Elon Musk Ends Model S and X Production as Tesla Pivots to AI and Robotics

Elon Musk announced that Tesla will discontinue the Model S and Model X to convert its California factory for the production of Optimus humanoid robots following a 46 percent drop in annual net income.The strategic shift toward artificial intelligence and robotaxis comes as the company lost its title as the top electric vehicle seller to the Chinese firm BYD and faces new competition from Alphabet-owned Waymo.Shareholders recently approved a $1 trillion pay package for Elon Musk while the company committed $20 billion to capital expenditures despite the removal of federal subsidies by Donald Trump.